Amgen Plummets 1.87%: Expansion News Fails to Offset Intraday Selloff Amid Biotech Sector Turbulence

Summary
• Amgen (AMGN) trades at $289.90, down 1.87% as of 19:01 ET
• Intraday range spans $289.58 to $297.09, reflecting volatile session
• $650M U.S. manufacturing expansion announced Sept. 26, creating 750 jobs
• Biotech sector under pressure as sector leader Bristol-Myers Squibb (BMY) declines 1.83%

Amgen’s sharp intraday decline defies its recent $650 million U.S. manufacturing expansion announcement, which was touted as a catalyst for job creation and supply chain resilience. The stock’s 1.87% drop to $289.90 has drawn attention amid broader biotech sector weakness, with technical indicators and options activity suggesting a pivotal moment for the Dow 30 biotech giant.

Expansion Optimism Clashes with Market Realities
Amgen’s $650 million U.S. manufacturing expansion, announced Sept. 26, was intended to bolster its biologics production and supply chain resilience. However, the market’s mixed reaction—despite the company’s $40 billion post-TCJA investment track record—reflects skepticism about near-term execution risks and macroeconomic headwinds. The expansion’s focus on Puerto Rico’s biopharma ecosystem, while strategically sound, faces scrutiny amid rising input costs and regulatory uncertainties. Meanwhile, the stock’s 1.87% intraday drop aligns with broader investor caution in the sector, as biotech firms grapple with valuation pressures and earnings volatility.

Biotech Sector Under Pressure as BMY Trails AMGN
The biotech sector remains in a defensive posture, with sector leader Bristol-Myers Squibb (BMY) mirroring Amgen’s downward trajectory. BMY’s 1.83% intraday decline underscores sector-wide jitters, driven by regulatory risks and profit-taking after recent gains. While Amgen’s expansion announcement was meant to differentiate its growth narrative, the synchronized selloff highlights shared vulnerabilities—particularly in a market environment where high P/E ratios (Amgen’s 24.68x) face scrutiny amid rising interest rates and earnings volatility.

Options Playbook: Capitalizing on Volatility and Key Levels
• 200-day MA: $288.77 (near support)
• RSI: 59.48 (neutral, no overbought/oversold signal)
• MACD: 3.01 (bullish divergence with price)
• Bollinger Bands: $264.24–$304.33 (wide range, high volatility)

Amgen’s technical profile suggests a pivotal test of its 200-day moving average ($288.77) and key support at $280.47 (30D support). The stock’s short-term bullish trend clashes with long-term range-bound dynamics, creating a high-probability setup for options traders. With implied volatility averaging 30–75% across the chain, the following two contracts stand out for directional and volatility-driven strategies:

• AMGN20251017P285 (Put, $285 strike, 10/17 expiry)
- IV: 28.49% (moderate)
- LVR: 109.09% (high leverage)
- Delta: -0.3249 (sensitive to price moves)
- Theta: -0.1418 (moderate time decay)
- Gamma: 0.0294 (responsive to price swings)
- Turnover: 7,885 (liquid)
- Why it stands out: This put option offers asymmetric upside in a bearish scenario. A 5% downside to $275.41 would yield a payoff of $10.09 per contract, translating to a 112% return on premium. The high gamma and moderate delta make it ideal for capitalizing on a break below $285.

• AMGN20251017C290 (Call, $290 strike, 10/17 expiry)
- IV: 26.74% (moderate)
- LVR: 61.74% (high leverage)
- Delta: 0.5160 (balanced sensitivity)
- Theta: -0.4516 (aggressive time decay)
- Gamma: 0.0347 (high responsiveness)
- Turnover: 12,594 (liquid)
- Why it stands out: This call option is well-positioned for a rebound above $290. A 5% upside to $304.40 would generate a $14.40 payoff, a 123% return on premium. The high gamma and moderate delta make it a top pick for a short-term breakout trade.

Actionable Insight: Aggressive bulls should consider AMGN20251017C290 into a bounce above $290, while bears may target AMGN20251017P285 if the stock breaks below $285. Both contracts offer high leverage and liquidity, aligning with Amgen’s volatile intraday profile.

Backtest Amgen Stock Performance
I’m sorry — our event-backtest engine threw an internal programming error (“convert_statistics not defined”), so the automated performance report could not be generated just now.Here are two practical ways we can still move forward:1. Retry with an alternative engine • We can simulate a simple event-driven trading strategy instead: – Open a position on the next day’s open after each −2 % intraday plunge. – Close it after a user-specified holding period (e.g., 3, 5, 10, or 20 trading days). • This uses the strategy_backtest_engine, which may bypass the faulty module. • You can tell me the holding-period rule (and any stop-loss / take-profit you’d like) and I’ll run it immediately.2. Wait for the fix / export raw event dates • I already generated the full list of plunge dates in file amgn_plunge_events_2pct.json. • I can share or download that list for you to analyse elsewhere, and re-run the event back-test once the engine bug is fixed.Please let me know which option you prefer (or if you’d like a different holding-period rule), and I’ll proceed right away.

Critical Crossroads: Amgen’s $285 Support Test Looms
Amgen’s intraday selloff has created a pivotal juncture, with the $285 level acting as a critical psychological and technical threshold. The stock’s 52-week range ($253.30–$335.88) and 24.68x P/E ratio suggest a valuation anchor, but near-term execution risks—particularly around its Puerto Rico expansion—could prolong volatility. Investors should monitor the 200-day MA ($288.77) and 30D support ($280.47) for directional clues. With sector leader BMY also down 1.83%, a broader biotech correction could amplify downside pressure. Act now: Buy AMGN20251017P285 if $285 breaks, or go long AMGN20251017C290 on a rebound above $290.